Daijiworld Media Network – Mangalore (AF)
Mangalore, Apr 6: In response to the imposition of Value Added Tax (VAT) on the beedi industry, the state Bidi Industry Association has urged deputy chief minister B S Yediyurappa to revoke the tax on the industry.
A press release stated that the imposition of VAT will result in increase in price of the product thereby having an adverse affect sale of bidis.
The price of a single packet will go up from Rs 5.50 to Rs 6.50 if the wholesalers, retailers and traders claim input credit for VAT.
The release further stated that states like Kerala, West Bengal and Maharashtra have already exempted the bidi industry from VAT and urged the state government also to do the same.